Account A starts now with $100 and pays 4% interest. After 2 years an additional $25 is deposited in account A. Account B is opened 1 year from now with a deposit of $95 and pays 8% per year. When (in years and days) will account B have 1.5 times the accumulated value of account A?

Account A starts now with $100 and pays 4% interest. After 2 years an additional $25 is deposited in account A. Account B is opened 1 year from now with a deposit of $95 and pays 8% per year. When (in years and days) will account B have 1.5 times the accumulated value of account A?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

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Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.

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